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August 14, 2014

Stronger smartphone sales boost Lenovo’s Q1 profit

For the first time, Lenovo’s smartphone sales overshadowed its PC business.

By CBR Staff Writer

Chinese PC maker Lenovo has reported a 23% rise in profit during the first quarter ending June 30 to $214m, on the back of stronger smartphone sales.

The revenue of the company jumped 18% to $10.4bn compared to the corresponding quarter, with a big jump in its smartphone and tablet business (Mobile Device Business) with a record sale of 15.8 million units, which recorded 39% year-on-year growth.

Lenovo said that most of the smartphone shipment was made outside China and the company saw a huge growth of sales in Europe and Southeast Asia.

Though mobile devices dominated the growth, laptop sales also rose 12% in the same period, generating 49% of the company’s total revenue.

The PC industry saw a 3.7% decline in shipment in comparison to previous year, but Lenovo managed to grab the top spot in PC shipment ,which grew 12.1% year-on-year, contributing 29% of Lenovo’s total revenue.

Lenovo chairman and CEO, Yuanqing Yang, said: "This has been a quarter of milestones for Lenovo – record PC share, a number three ranking in worldwide tablets for the first time, and an even stronger number four global smartphone position."

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"As the PC industry recovers, the smartphone market continues its shift from premium to mainstream, and our acquisitions of Motorola Mobility and IBM x86 proceed toward completion, we see even more opportunity to keep growing rapidly."

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